3 Indian firms among top 10 in ‘Everest Group Engineering Services Top 50’ list

Our Bureau Chennai | Updated on July 02, 2020 Published on July 02, 2020

HCL Technologies, TCS, Wipro rank third, seventh and 10th respectively

Three Indian IT companies — HCL Technologies, Tata Consultancy Services and Wipro — have made it to the top ten of the world’s largest third-party providers of engineering services (ES) list released by the Everest Group, a global consulting and research firm focussed on strategic IT, business services, engineering services, and sourcing.

ES includes all activities that support the design, development, testing and management of products, both hardware and software.

While Altran (a part of Capgemini) and Alten were ranked first and second respectively, HCL Technologies was ranked third; TCS seventh and Wipro 10th in the second annual edition of “Everest Group Engineering Services Top 50,” which was based on revenues and year-on-year growth.

The Everest Group Engineering Services Top 50 represented more than $45 billion of outsourced spending. The global ES industry grew 13 per cent in 2019, driven by enterprises’ need for support in the form of scale, skills, technologies and intellectual property.

The ES market consolidated significantly in 2019, with many ES providers acquiring others to enhance their competitive position and drive revenue growth, says a press release from Everest.

Topping the 2020 list of ES providers are these 10 leaders:

1. Altran (part of Capgemini), 2. Alten, 3. HCL Technologies, 4. AFRY (ÅF Pöyry), 5. AVL, 6. AKKA Technologies

7. Tata Consultancy Services, 8. Accenture, 9. DXC Technology 10. Wipro

“We expect engineering service providers to assume an increasingly significant role as enterprises turn to them for high-end engineering activities,” said Akshat Vaid, Vice-president, Everest Group.

“As the Covid-19-triggered economic slowdown drives firm valuations lower, we expect M&A activity to increase, driving further consolidation in the ES industry in 2020. We also expect significant churn in the existing outsourcing relationships in 2020 as enterprises across industry verticals look at vendor consolidation as a strategic lever for structural cost savings,” he said.

Seven service providers in the list experienced decline in revenue ranging from -0.3 per cent to 9 per cent due to multiple factors. However, the most common reason was economic slowdown in specific industry sectors such as automotive, aerospace and defence, and manufacturing.

Europe continues to hold a major share (48 per cent) of the providers in the Top 50 list, followed by Asia Pacific at 28 per cent and North America at 22 per cent, the release said.

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Published on July 02, 2020
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